This was the first decline since the fourth quarter of 1998. GDP was expected to grow 3.1 percent.

On a quarterly basis, the economy shrank 5.1 percent in the first quarter.

The contraction in the first quarter suggests that the lockdown is having a severe impact on economic activity and that growth is likely to be even worse than feared in 2020, Alex Holmes, an economist at Capital Economics, said.

Containing the spread of the virus and saving hundreds of thousands of lives through the imposition of enhanced community quarantine has come at a great cost to the Philippine economy, Acting Economic Planning Secretary Karl Chua reportedly said.